PlusToken’s core members have been arrested in China, and the scheme has been completely demobilized, says a report from Cailian News. The report claims over 100 people were arrested by China’s Ministry of Public Security earlier today.
The End of PlusToken?
A report from Chinese media outlet Cailian News claims the Ministry of Public Security has arrested 27 criminal suspects and 82 key members of the infamous PlusToken scam.
The scam involved 2 million participants and stole over $2 billion in cryptocurrencies, making it one the largest Ponzi schemes the crypto industry has seen.
27 core PlusToken team members are all arrested by Chinese police, the biggest crypto scam in the history so far, $3B worth of crypto is scammed
Bulls now have little to no baggage 🧳 and lets send it to the 🌕 pic.twitter.com/SiDJVSqA5J
— Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) July 30, 2020
On-chain sleuths have been tracking PlusToken funds to ensure they are unable to cash out. Exchanges, too, have been cautious not to let any funds from associated addresses cash out from their platforms.
The scheme duped investors in several cryptocurrencies such as BTC, ETH, and others like EOS. They have frequently been dumping massive amounts of tokens on certain unwitting exchanges, driving prices down, and deteriorating sentiment.
If the reports are true, Bitcoin’s upside sentiment is bound to improve as the possibility of the scheme dumping tokens and pushing price down decreases. The Chinese government will likely take control of PlusToken’s loot.